Taughannock Falls

Taughannock Falls
from: althouse.blogspot.com

Thursday, October 7, 2010

Obama does the right thing to combat foreclosure fraud

Here's the official White House explanation for President Obama's veto of HR 3808:

Today, the White House announced that President Obama will not sign H.R. 3808, the Interstate Recognition of Notarizations Act of 2010, and will return the bill to the House of Representatives. The Interstate Recognition of Notarizations Act of 2010 was designed to remove impediments to interstate commerce. While we share this goal, we believe it is necessary to have further deliberations about the intended and unintended impact of this bill on consumer protections, including those for mortgages, before this bill can be finalized.

Notarizations are important for a large range of documents, including financial documents. As the President has made clear, consumer financial protections are incredibly important, and he has made this one of his top priorities, including signing into law the strongest consumer protections in history in the Wall Street Reform and Consumer Protection Act. That is why we need to think through the intended and unintended consequences of this bill on consumer protections, especially in light of the recent developments with mortgage processors.

The authors of this bill no doubt had the best intentions in mind when trying to remove impediments to interstate commerce. We will work with them and other leaders in Congress to explore the best ways to achieve this goal going forward.

The reason why President Obama's decision is good for consumers is simple: the bill as written would have made it easier for banks and mortgage companies to obscure their actions. Streamlining the notarization process, and replacing traditional signed and sealed documents with "electronic signatures" makes it too easy to post-date phony paperwork and cover up shady dealings. Let's hope this willingness to stand up to the banksters continues!

1 comment:

paulap68 said...

Could this be a sign of the good influence of Elizabeth Warren? Whatever, I'm glad they're doing the right thing.